41 Minn. 522 | Minn. | 1889
The plaintiff and defendant executed an agreement in writing for the exchange of lands. The plaintiff was to pay to the-defendant $225 upon the exchange of deeds. The lands to be exchanged were incumbered, and each party agreed to assume and pay the incumbrance upon the lands to be by him received in exchange. The defendant also agreed to make, within a specified time, certain specified improvements in the buildings upon the land which he was-to convey, and to “assign the insurance.” Each party was to furnish to the other an abstract of title. The agreement contained the further provision that “the party who is in default in any of the conditions herein is to pay the other the sum of $200 as stipulated damages.” The defendant having refused to perform this agreement, this action is prosecuted to recover the sum specified therein as stipulated damages. Without any proof of actual damages a recovery was allowed of the stipulated sum. This appeal raises the question whether the sum named in the contract is to be construed as a penalty or as liquidated damages.